RICHMOND, VIRGINIA EXECUTIVE SUMMARY

RICHMOND, VIRGINIA EXECUTIVE SUMMARY

Executive Summary PROPERTY OVERVIEW Holliday Fenoglio Fowler, L.P. ( HFF ), as exclusive advisor, is pleased to offer for sale the leasehold interest in Merchants Walk Shopping Center (the Property or Merchants Walk ), a 220,001 square foot, grocery-anchored shopping center located in Richmond, Virginia. At 9.6% leased or at LOI, the Property is anchored by Food Lion and Marshalls and is further complemented by a value-oriented merchandising mix ideal to support the surrounding community s strong middle-class population. Merchants Walk Shopping Center offers stable cash flow (+70% credit and national tenants) with considerable upside through lease-up and the strengthening of Food Lion s market position after the recently closed Ahold Delhaize merger. The Property is prominently located on West Broad Street (47,7 VPD), which is the main commercial thoroughfare in the area, connecting downtown Richmond to the western suburbs. The surrounding submarket is densely populated (94,474 people within three miles) with solid average household incomes ($77,702 within three miles) and benefits from Richmond s robust economy and low unemployment rate of 4.1%. Merchants Walk provides stable cash flow from well-seasoned, value-oriented tenants in a proven market. The combination of a grocery-anchor with a top- market share, exceptional inplace cash flow, and significant upside make Merchants Walk a compelling acquisition opportunity. Property Overview Address 7502 West Broad Street Richmond, VA 2294 GLA (SF) Component GLA % of GLA Occupancy Anchor 45,000 20.5% 100.0% Junior Anchor 92,00 41.8% 100.0% Inline/Pads 82,898 7.7% 8.0% Total 220,001 100.0% 9.6% Year Built 1982 Site Size (Acres) 27.00 Acres Parking Ratio 5.9 Spaces per 1,000 SF Parking Spaces 1,186 Traffic Counts West Broad Street (Route 250) 47,7 Wistar Road 7,619 In-Place NOI* $1,60,000 Ground Lease Overview Ground Lessor Richard I. Pruitt Expiration Date 12/1/2078 Remaining Term 62 Years * Please note that In-Place NOI reflects revenue from Odd Ball Antiques, which is currently in lease negotiations 2

1 S H O PPI N G CEN TER AVAILABLE SPACE LEASED SPACE 9 15 51 47 4 9 41 7 5 1 29 27 25 2 21 19 17 67 71 57 65 69 7 75 105 WEST BROAD STREET (47,7 VPD) 85 250 87 89 91 95 10 WISTAR ROAD (7,619 VPD) Suite Tenant Size(SF) Suite Tenant Size(SF) Suite Tenant Size(SF) Suite Tenant Size(SF) Suite Tenant Size(SF) 001 AVAILABLE 8,200 025 Cici's Pizza 4,000 041 Negril 2,048 069 Merchants Tobacco 1,150 095 McCormick Paints 4,960 00 Jo-Ann Fabrics 18,419 027 Uniform City,08 04 1st Nails 1,050 071 RVA Cafe 1,120 10 Hanger Prosthetics 4,84 009 Food Lion 45,000 029 Sally Beauty Supply 2,167 045 Kelly Massage 998 07 Olympic Hair 980 105 Bank of America 950 015 Marshalls 27,000 01 Catherine's 4,000 047 Cremation Society of Virginia 4,107 075 CVS Office Tenant 10,205 Total Square Feet 220,001 017 Aqua-Tots Swim School 4,400 0 Lendmark Financial 2,11 051 UFC 11,455 085 CitiTrends 11,987 019 AVAILABLE 2,800 05 Cato,200 057 Dollar Tree 8,956 087 Odd Ball Antiques (at LOI) 15,968 021 AVAILABLE,08 07 MetroPCS 1,200 065 Los Comales 1,780 089 Jenny Craig 1,68 02 Wok N Roll 2,167 09 GNC 1,494 067 K.P. Alpha Jewelers 1,050 091 Renegade Classics 2,709

Executive Summary INVESTMENT HIGHLIGHTS Food Lion Recently Enhanced by Ahold Delhaize Merger As of July 2016, Food Lion is a subsidiary of Ahold Delhaize, the result of the $28 billion merger of Dutch grocer Ahold and Belgian grocer Delhaize. The merger creates the 4th largest grocer in the United States, with more than 2,000 stores in 2 states and a dominant position on the East Coast. In Richmond, Food Lion is the rd largest grocer with a 1.4% market share. The post-merger parent company is investment grade credit (Moody s Baa equivalent to BBB by S&P). Food Lion s Investmemnt in Merchants Walk In March 2017, Food Lion will begin an extensive renovation program which will include new exterior signage and interior fixture improvements among other upgrades. The renovation is part of a company-wide initiative to invest capital into stronger stores where they are making a long-term commitment. In the Richmond market, Ahold Delhaize is in the process of divesting 19 Martin s grocery stores, putting the strength of the new platform firmly behind Food Lion in the local market. With increased online presence via Ahold s Peapod concept and improved regional and national market share, Food Lion is expected to benefit via increased sales, streamlined distribution, and cost efficiencies. Tenant Overview Major Tenants Size (SF) % of Total GLA S&P Credit Rating Food Lion 45,000 20.5% BBB Marshalls 27,000 12.% A+ Jo-Ann Fabrics 18,419 8.4% - CitiTrends 11,987 5.4% - CVS Office Tenant 10,205 4.6% BBB+ Dollar Tree 8,956 4.1% BB+ Catherine's 4,000 1.8% BB- Cato,200 1.5% - Sally Beauty Supply 2,167 1.0% BB+ Bank of America 950 0.4% A Major Tenants 11,884 59.9% Leased Shops & Pads 74,04.7% Available Shops & Pads 14,08 6.4% Total 220,001 100.0% 4

Leasing Momentum with Upside The recent signing of UFC Gym for 11,455 square feet of difficult-to-lease corner space fills a crucial vacancy and will provide increased foot traffic from its gym members. With 14,08 square feet (6.4%) of remaining space to lease, there is significant upside remaining for the buyer. In addition to the new UFC Gym lease, tenants occupying approximately 100,000 square feet of space have renewed their leases over the past year, including Food Lion, Marshalls, and CVS. Exceptional Cash Flow Stability Strong Tenant Credit, Seasoned Tenancy and Favorable Health-Ratios 25.0 Average Weighted Tenancy (In Years) Credit ratings of Food Lion (BBB), Marshalls (A+), CVS (BBB+), and Bank of America (A) translate to 8% of GLA and % of income attributable to investment grade tenants. Furthermore, average tenant seasoning at the Property is 16.1 years, with Anchor tenants having an average tenure of over 20 years. Strong tenant stability at Merchants Walk demonstrates its competitive strength in the marketplace and ideal location for value-oriented retailers. Tenant longevity at Merchants Walk is supported by the favorable health ratios achieved at the Property. With notably low rents, 2015 anchor health ratios averaged below 4.0% at the Property, while inline tenants averaged below 10.0%. 20.0 15.0 10.0 5.0 21.4 19.2 Total Average Tenancy: 16.1 Years 12.4 Tenant Type By GLA Tenant Type By Revenue 0.0 Major Tenants Average Anchor Average Inline Available 6% Local/Regional 2% Credit 8% Local/Regional 1% Credit 1% National % National 8% 5

Executive Summary INVESTMENT HIGHLIGHTS Vibrant Regional Economy Richmond s economy is diverse and thriving, with significant presence from state and local governments, finance and insurance, law, healthcare, agricultural, logistics and manufacturing firms. Richmond s status as a state capital combined with its low cost of doing business and strategic location on I-95 less than two hours from Washington, DC, has made it a preferred location for corporate headquarters (home to ten Fortune 1000 companies) and ancillary locations. As of November 2016, the Richmond metro area had an unemployment rate of only 4.1%. WASHINGTON, DC 100 MILES Densely Populated, Infill Location in Strong Market Merchants Walk benefits from an infill location along the dominant retail corridor in one of the nation s healthiest regional economies. There are close to 100,000 people living within three miles of the Property and, in addition, West Broad Street is a main commuting thoroughfare connecting Richmond s western neighborhoods and suburban office parks to Downtown. According to CoStar, the Northwest Retail Submarket has a 4.2% vacancy rate with 424,906 square feet of net absorption in 2016. As a whole, Richmond has a vacancy rate of only 5.6% on a total of over 80 million square feet of retail space. Demographics Overview 1-Mile Radius -Mile Radius 5-Mile Radius 2017 Population 10,72 94,474 215,758 Projected Growth 2017-2022 2.0%.0% 4.0% Average Household Income $54,482 $77,702 $92,942 Richmond Accolades # Best Cities to Relocate to in the US - Huffington Post (2015) Unencumbered by Existing Financing The Property will be sold on a free and clear basis, which allows an investor to take advantage of today s strong lending markets to generate accretive cash on cash returns. # 10 Best Places to Start a Business - Inc. Magazine Leasehold Interest with Over 60 Years of Term The Property is currently subject to a ground lease through 2078. # Top 10 Mid-Sized American Cities of the Future 2015/2016 for Economic Potential - Foreign Direct Investment Magazine # 10 Top cities for business growth - Huffington Post (2015) 6

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RICHMOND, VIRGINIA John Owendoff Holliday Fenoglio Fowler, L.P. Managing Director 202.777.202 jowendoff@hfflp.com Jordan Lex Holliday Fenoglio Fowler, L.P. Director 202.5.2517 jlex@hfflp.com Chris Horning Holliday Fenoglio Fowler, L.P. Analyst 202.777.212 chorning@hfflp.com Mark Remington Holiday Fenoglio Fowler, L.P. Financing 202.5.252 mremington@hfflp.com 1775 Pennsylvania Ave, NW 5th Floor Washington, DC 20006 202.5.2500 hfflp.com